Types of Lending Options

Available from many banks & credit unions

No Promotional offers

APRs widely vary and are dependent on credit score (~ 5% and can go to 35% or higher)

Applicant receives funds in as little as one business day

The homeowner needs to pay the contractor directly

Available to consumers ONLY through approved contractors in a dealer network

Offer a wide variety of promotional offers (think of your typical 0% APR offer or a flat 7.99% APR or a “Same as Cash”)

Once the application is approved, the contractor receives the money directly.

Applicant pays back the loan directly to the Merchant Lender

Accepts credit-challenged customers with APRs not as high as Personal Loans

Money is used specifically for the project the contractor is completing

Some MB Lenders offer staged funding, which gives the contractor a % of the project funding upfront

Available from many banks & credit unions

Offer some intro promotional offers such as 0% APR

APRs widely vary and are dependent on credit score

The credit line is not determined until approved, so there might be a difference in the amount of the project vs. their total credit line

Can be approved same day but may not be able to be used until the card arrives in the mail (~5-7 biz days)

Home Equity Line of Credit

Available ONLY to homeowners who have owned their home long enough to have equity in it

Long process, can take 3 weeks +

High loan amounts (up to 6 figures